RBI to hike repo rate by 50 basis points, lower FY23 growth to 7% in June review: Barclays

The Reserve Bank will opt for a larger, 0.50 percent, hike in key rates at its next monetary policy review in June to protect medium term economic stability in face of the uncomfortable inflation situation, a British brokerage said on Thursday.

The central bank will likely revise its inflation estimate to 6.2-6.5 percent, which is way above the upper end of its tolerance band of 2-6 percent, economists at Barclays said.

"We expect the RBI to deliver another large interest rate hike in June, as above-target inflation could undermine medium-term economic stability,” its chief economist Rahul Bajoria said, adding that the quantum of rate hike can be 0.50 percent.